100% mortgage sales reach five-year high

According to a Freedom of Information request by Compare the Market for market data from the Financial Conduct Authority (FCA), this was up from 402 over the same period in 2021, or 452 over the whole year. 

The number of no-deposit mortgages sold dropped to 135 in 2022, then rose to 248 in 2023, 423 in 2024, and 574 over a nine-month period in 2025. 

The regions with the highest volume of 100% mortgage sales in the first three quarters of 2025 included the North West and South West, followed by East Midlands and Yorkshire and the Humber. 

The cost of a 100% mortgage 

While 100% LTV mortgages allow people to buy a home with no deposit, Compare the Market said the products typically had higher costs than 95% LTV deals. 

For example, Skipton Building Society’s ‘Track Record’ five-year fixed mortgage was priced at 5.55% as of 24 March, while its 95% LTV five-year fix had a rate of 5.28% with a £999 fee. 

Based on the average house price of £270,000 over a 30-year term, a no-deposit mortgage would cost £1,542 per month in repayments, and over the full term, a buyer would pay £284,944 in interest. 

With a 5% deposit and a 5.28% rate, based on the average UK house price of £270,000 and a 30-year term, repayments would work out at £1,421 per month. Over the full term, a buyer would pay £255,122 in interest. 

By contrast, putting down a £13,500 or 5% deposit would work out at £1,421 per month and a total interest cost of £255,122 over the full term. 

Putting down a deposit could save buyers £29,822 in interest over the long term. 

Compare the Market said putting down a deposit also made it easier to build up equity. 

Charlie Evans, money expert at Compare the Market, said: “The rise in zero-deposit mortgages is symptomatic of a market in which many buyers are finding it increasingly difficult to save, as rents, household bills and everyday costs continue to eat into disposable income. 

“First-time buyers are turning to 100% mortgage loans as a way onto the property ladder – particularly in regions like the North West and South West, where demand was strongest last year. Greater product availability and lenders cautiously re-entering this space may also be playing a role.” 

He added: “While 100% mortgages can remove the upfront hurdle of a deposit, they often come with higher rates – and even a 5% deposit could help to save borrowers nearly £30,000 over the long term. As ever, it comes down to individual circumstances, so shopping around for a competitive deal is key.” 

David Hollingworth, associate director at L&C, said: “Lenders have increasingly sought to address the challenges that first-time buyers face. Saving for a deposit is certainly not easy, especially alongside higher rents and cost of living. 

“The increased availability of mortgages for those with a small or no deposit can help to boost the chance of buying more quickly. 

“If it is possible to get a deposit together, it will help to broaden the mortgage choices and improve the interest rates on offer. Typically, the bigger the deposit, the better the rates will be, which will make monthly payments more affordable.”